On CNBC's "Trading Nation," Todd Gordon of TradingAnalysis.com suggested a bullish options strategy in Advanced Micro Devices, Inc. AMD.
Gordon thinks it's more expensive than NVIDIA Corporation NVDA by forward price-to-earnings ratio, but he's looking ahead to the release of Zen 3 CPUs. The company is also gaining market share from Intel Corporation INTC.
Gordon owns the stock and he would add to the position on this pullback. He wants to buy the November $85/$100 call spread for $4.18. The trade breaks even at $89.18 or almost 10% above the closing price on Tuesday. If the stock jumps to $100 or higher, the trade is going to reach its maximal profit of $10.82.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.